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In goodwill adjustment on admission which ratio should be used only when sacrificing ratio is not separately given and old partners sacrifice in old ratio?

Answer and explanation

Correct answer: Old profit sharing ratio

If sacrifice is stated to be in old ratio then sacrificing ratio equals old ratio. Otherwise actual sacrifice should be calculated.

Related tags

Ratio SelectionOld RatioSacrificing RatioGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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